Many have expected me to “change my tune” about the coming collapse because of how well the stock market has been performing. Well, that’s simply not going to happen. Why? Because our economic fundamentals continue to deteriorate, and our financial system is in far worse shape than it was just prior to the financial crash of 2008. The truth is that we are right on schedule for the next great financial crash. You can choose to ignore the warnings if you would like, but ultimately time will reveal who was right and who was wrong.
The above introductory comments are edited excerpts from an article* by Michael Snyder (theeconomiccollapseblog.com) entitled Most People Don’t Believe It, But We Are Right On Schedule For The Next Financial Crash.
Snyder goes on to say in further edited excerpts:
People have such short memories. Even though we are repeating so many of the same patterns that we witnessed in 2000-2001 and 2007-2008, most people do not think that another financial crash is coming.
With the stock market setting record high after record high lately, I have been taking quite a bit of criticism for my relentless warnings about the coming financial storm…[People] just assume that since the stock market has soared to unprecedented heights that all of us “bears” must be wrong but the truth is that what we are observing right now is classic bubble behavior…The financial markets have become completely divorced from economic reality, and such a state of affairs never lasts forever. It is just a matter of time before a correction comes…
People need to understand that just because something has not happened yet does not mean that it is not going to happen. In this day and age, we have extremely short attention spans and we do not have the patience to wait for much of anything – but the financial world is not a game of checkers. It is a game of chess where things can take an extended period of time to play out…[C]onsider where we stand financially in comparison to previous crash cycles:
- the derivatives bubble is 20% greater than it was back in 2008,
- the “too big to fail banks” are 37% larger than they were back in 2008 and
- global debt levels are 40% larger than they were back in 2008.
In other words, many of our long-term economic problems are a lot worse than they were just prior to the last major financial meltdown – but most people pay such little attention to the fundamentals these days. All they can see is that little stock market ticker going up and up and up…
Look at the chart of the NASDAQ that I have posted below. The “dotcom bubble” in 2000 is really easy to see so why can’t more people recognize the bubble that is happening now?…
In so many ways…[our current] bubble is reminiscent of the “dotcom bubble” of 14 years ago. What we are experiencing is not normal and this is especially true considering the fact that our overall economic performance is tepid at best. A stock market correction is coming…
Yes, the next financial crash has taken longer to come to fruition than many had anticipated but, as I have discussed so many times before, this is a very good thing. We should want this period of relative stability to last for as long as possible. The longer that things remain relatively stable, the longer that all of us have to prepare and to position ourselves for the financial chaos that is coming.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://theeconomiccollapseblog.com/archives/most-people-dont-believe-it-but-we-are-right-on-schedule-for-the-next-financial-crash (Copyright © 2014 The Economic Collapse)
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